Millions of people across the UK will start to receive a £301 cost of living payment from the Department of Work and Pensions (DWP) next week.
Payments will begin to arrive between April 25 and May 17 for 686,000 Scots on Universal Credit, Pension Credit, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA) and Income Support.
People in receipt of Tax Credits only will also receive the money between May 2 and 9, directly from HM Revenue and Customs (HMRC).
What benefits qualify for the Cost of Living Payment?
People that received the following benefits between January 26 – February 25, 2023 may be entitled to the £301 payment:
- Universal Credit:
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Child Tax Credit
- Working Tax Credit
Anyone who made a joint claim on the qualifying dates will receive a single payment of £301, if eligible.
Full details of Cost of Living Payment eligibility can be found on the Government website.
New Pension Credit claims may still be eligible
The DWP is encouraging low-income pensioners to check their eligibility for Pension Credit if they haven’t already applied.
Anyone who makes a Pension Credit application before May 19 that is later successful could still qualify for the Cost of Living Payment.
This is because Pension Credit is a retrospective benefit that can be backdated up to three months, taking it within the qualifying period of January 26 – February 25.
What benefits don’t qualify for the £301 payment?
Not all benefits qualify for the Cost of Living Payment, meaning people who receive the below will miss the payout:
- New Style ESA
- Contributory ESA
- New Style JSA
Sanctions’ will impact payment
Following confusion, the Government has clarified that claimants whose benefits have been reduced to £0 following a ‘sanction’ will not receive the £301.
Benefits may also be reduced to £0 if:
- A person received more than one earnings payment during the Universal Credit assessment period
- The person or their partner’s earnings or savings increased
- The person began receiving another benefit
- A sanction was put in place for breaching the claimant commitment
However, some people may still be eligible for a Cost of Living Payment despite their benefit being reduced to £0.
This may happen if money was taken from the benefit for other reasons, such as rent payments or for money owed. They may also still be due the £301 if they received a hardship payment to cover essentials as a result of the sanction during the qualifying period.
How will payments be made?
Most people on DWP benefits will be paid the £301 between April 25 and May 17, while most people on tax credits and no other low income benefits will be paid between May 2 and May 9.
Payments will be made automatically, meaning no one needs to apply for the pay out.
The support payment will appear on accounts as DWP COLP with the recipient’s National Insurance number.
It will also be tax-free, won’t count towards the benefit cap and won’t have any impact on existing benefits afterwards.
